Telecom Equipment News
- Siemens probe finds improper activities
Date: 24-Aug-2007 Sources: (Shenzhen Daily)
INDUSTRIAL group Siemens AG on Wednesday said it had discovered improper behavior by some of its staff in China but rejected a German media report which said around half of its business in China was tainted by bribery.
'In terms of the statement made in the German press about Siemens' China business being influenced by bribery, this statement cannot be made,'Richard Hausmann, president of Siemens China, told a news conference.
But he said a company-wide investigation into allegations that its staff paid bribes had uncovered some cases of improper business activities in China. He warned that such behavior would have 'clear consequences.'
Over the past year, Siemens has cut ties with 20 employees in China who did things which the company did not approve, Hausmann said without elaborating.
He was responding to a report in a German magazine which quoted unnamed sources saying bribery influenced around 50 percent of Siemens' China business. The report did not give a timeframe or say how much money was involved.
The German conglomerate said in May that it had invested more than 15 billion yuan (US$2 billion) in China and planned to invest a further 10 billion yuan, doubling its annual sales in 2010 from 50.4 billion yuan in 2006.
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